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Taxation for Decision Makers

Business

Quiz 12 :

Estates, Gifts, and Trusts

Quiz 12 :

Estates, Gifts, and Trusts

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The gift tax and estate taxes were imposed in 1932 and 1916, respectively.
Free
True False
Answer:

Answer:

True

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Painting a house for your mother is not a taxable gift.
Free
True False
Answer:

Answer:

True

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If two properties are currently of equal value, giving away the property least likely to appreciate would reduce potential estate value.
Free
True False
Answer:

Answer:

False

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Gifts are valued at their fair market value on the date of the gift and the donee takes this fair market value as basis.
True False
Answer:
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Putting cash into a joint bank account is a gift to the joint tenant when deposited.
True False
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The tax on generation skipping transfers has been repealed.
True False
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The kiddie tax applies to all unearned income of a child under 19.
True False
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A taxpayer must not retain any incidents of ownership in a life insurance policy on his or her life to have it excluded from his or her taxable estate.
True False
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Probate determines the property included in a decedent's taxable estate.
True False
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A taxpayer can elect to pay a gift tax rather than use part of his or her unified credit.
True False
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The executor can elect the alternative valuation date only if both the value of the estate and the estate tax are reduced.
True False
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Only gift taxes of a present interest in property are eligible for the unified credit.
True False
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Gift splitting allows a married couple to use both their annual exclusions in determining taxable gifts.
True False
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Payment to a college for a grandchild's tuition is not a taxable gift.
True False
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No estate tax is due if a husband leaves his entire estate to his wife.
True False
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A trust always involves at least three different individuals.
True False
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A Section 529 education savings plan can only be used for the education of the specific child it was set up to benefit.
True False
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Gifts to most charities are not subject to gift taxes.
True False
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With a revocable trust, the grantor can change the terms of a trust at will.
True False
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The widow of a decedent may add the decedent's remaining lifetime exclusion to her lifetime exclusion only if the estate executor makes an irrevocable election.
True False
Answer:
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